Strategic Management of British Airways

Running head: STRATEGIC MANAGEMENT
British Airways
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1STRATEGIC MANAGEMENT
Executive Summary
The aim of the report is to find out the importance of strategic planning and the and identification
of the strategic planning into the British Airways. The British Airways is the leader in the United
Kingdom with respect to the airline industry. The British Airways has faced several competitions
from the competitors in the UK market and the other airline service providers over the past 10
years. The report consists of the critical discussion on the benefits of strategic planning on
British Airways; critical discussion on the environmental analysis which includes the internal
and the external environment as part of the strategic planning process; there is a preparation of
the of a report on the SWOT analysis based on the findings of the PESTLE and the Porter's five
forces; also recommendation is included that will direct the British Airways for a period of 3 to 5
years. The strategy of the British Airways is solely based on customer satisfaction, compliance
with the environmental laws and the maintaining proper employee relations.

2STRATEGIC MANAGEMENT
Table of Contents
Introduction......................................................................................................................................3
Benefits of Strategic planning.........................................................................................................4
Role of environmental analysis in the strategic planning process...................................................4
Internal environment analysis (Porter's five forces)........................................................................4
External environment analysis (PESTLE).......................................................................................4
SWOT analysis................................................................................................................................4
Recommendations............................................................................................................................4
Conclusion.......................................................................................................................................4
Reference.........................................................................................................................................4

3STRATEGIC MANAGEMENT
Introduction
British Airways was founded in the year 1974 and British Airways is one of the largest
airline service provider in the United Kingdom and is the second largest in Europe. The British
Airways comes in the second place just after the Air France-KLM in Europe. British Airlines
provide more flights across the Atlantic Ocean in comparison to the other airlines. It is only in
2008 that the British Airlines lost the old glory because in the UK the fame of an airline service
is measured in terms of the number of passengers that flies in that airlines. British Airways is
considered as the founding member of the alliance Oneworld in the year 1998. The company
Oneworld had several tie-ups with Royal Jordanian, Quantas, Malev, Japan Airlines, Iberia,
Finnair, Cathay and American Airlines. The main headquarters and the base are both located in
Gatwick airports and London Airlines and there is an extended network of flights to different
countries of the world. In March 2008, The British Airlines transferred 50 percent of its activities
to the Heathrow airport terminal 5 (British Airways 2018). From the beginning of the year 2009,
a majority of the flights take off from the terminal 5, however, there are exceptions like Sydney,
Singapore, Bangkok, Madrid, Lisbon, Helsinki, and Barcelona from the terminal 3. For around
several years, the fleet of British Airways consisted of the Boeing airlines, however, by the end
of the year 1998, the British Airlines inducted the Airbus into its fleet. For the purpose of the
long and overseas flights, the company uses the Boeing 747-400. British Airlines can be
considered as the largest operator of the Boeing Airlines all over the world. Currently, the
number of the operational Airbus and the Boeing airlines is 231. British Airways offers its
passengers from 2 to 4 different classes of international flights. For all the flights, Club World
and World Traveller are available which are business class and economy class respectively
(British Airways 2018). This study is based on the critical discussion of the strategic planning of